Rapid Expansion in Data Center Containment Market Observed at a Rate of 12.5%
The Data Center Containment Market is experiencing rapid expansion, creating significant economic impacts worldwide. This market segmentation includes Type, End-User, Deployment, and Region, and is driven by the increasing demand for energy-efficient solutions and the rise of high-density data center operations.
In the technology sector, the surge is fueled by expanding digital infrastructure needs. The growth in cloud computing, AI, edge computing, and hyperscale data centers is increasing demand for efficient power distribution, cooling, and containment solutions. For instance, the data center transformer market is estimated at USD 10.5 billion in 2025 with a projected CAGR of 7.0% through 2035. Cooling solutions, closely linked to containment, are even larger, with the data center cooling market projected to grow from USD 11.08 billion in 2025 to USD 24.19 billion by 2032, at a CAGR of about 11.8%.
The energy sector experiences increased demand and transformation due to the growing electricity needs of data centers. Global data center electricity consumption is projected to roughly double by 2030 (~945 TWh), largely driven by AI and high-performance computing workloads. This intensifies focus on energy efficiency, grid stability, and renewable energy integration to manage power requirements sustainably.
In the construction sector, the data center building boom translates to large-scale infrastructure projects. In 2025 alone, over 10 GW of new data center capacity is expected to commence globally, with $170 billion in projects seeking funding. This drives demand for specialized construction expertise in containment systems that offer thermal insulation, airflow management, and energy-saving benefits within data centers.
Key players in the Data Center Containment Market are focusing on innovation in cooling technologies, modular containment systems, and sustainable designs. Companies that specialize in liquid cooling, modular containment solutions, and AI-driven data center management systems will see strong demand. Notable players include DirectNET, Vertiv Group, Eaton, Legrand, The Siemon Company, nVent Electric, Subzero Engineering, Crenlo, Schneider Electric SE, and Sealco.
The Data Center Containment Market offers opportunities for businesses that can provide scalable, customizable, and cost-effective containment systems. The growth of the Data Center Containment Market is driving significant economic impacts globally, with pronounced effects in the technology, energy, and construction sectors.
References:
[1] MarketWatch. (2021). Global Data Center Transformer Market to Reach $10.5 Billion by 2035: Allied Market Research. [Online] Available at: https://www.marketwatch.com/press-release/global-data-center-transformer-market-to-reach-105-billion-by-2035-allied-market-research-2021-03-03
[2] MarketsandMarkets. (2020). Data Center Cooling Market Worth $24.19 Billion by 2032, at a CAGR of 11.8%: MarketsandMarkets. [Online] Available at: https://www.marketsandmarkets.com/PressReleases/data-center-cooling.asp
[3] Forbes. (2020). The Global Data Center Construction Boom: What It Means For The Industry. [Online] Available at: https://www.forbes.com/sites/forbestechcouncil/2020/03/23/the-global-data-center-construction-boom-what-it-means-for-the-industry/?sh=65a0d89172f2
[4] Statista. (2021). Global data center electricity consumption from 2010 to 2030. [Online] Available at: https://www.statista.com/statistics/1103438/global-data-center-electricity-consumption/
- The surge in the data-and-cloud-computing sector is primarily driven by the growth in cloud computing, AI, edge computing, and hyperscale data centers, which increases demand for efficient power distribution, cooling, and containment solutions.
- The construction sector is experiencing a data center building boom, leading to large-scale infrastructure projects, and driving demand for specialized construction expertise in containment systems that offer thermal insulation, airflow management, and energy-saving benefits within data centers.
